Launchy Regulatory Roundup #37 - Senate Nears Stablecoin Bill Deal

UK to Require Crypto Firms to Report Customer Tx | From Debanking to Adoption

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
May 18, 2025

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Good Morning.

Welcome to our 37th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

Regulators are no longer playing catch-up; crypto is becoming a frontline issue in financial policy.

In Today's Edition:

Headline: Senate Nears Stablecoin Bill Deal 🤝
Global Legal Roundup: 🇦🇺 Pro-Crypto Ass. Minister, 🇬🇧 Crypto Tx Reporting
Case Study: From Debanking to Stablecoin Adoption 💵

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HEADLINE

Senate Nears Stablecoin Bill Deal

IMG: CCN

State of play: Negotiations on the Senate’s stablecoin bill, the GENIUS Act, are reportedly 90% complete. The remaining issues include ethics rules for special government employees and standards for public companies issuing stablecoins.

Democrats are seeking stronger AML provisions and assurances that Republicans will continue negotiating in good faith.
A substitute amendment is being considered to replace the current version of the bill.
While a cloture vote was previously floated for Thursday, it has now been delayed.
Some Democrats are open to moving forward, but only if Republicans commit to finalizing the remaining details and voting on the amended bill.
The bill includes requirements such as 100% reserve backing for stablecoins and annual audits for issuers with over $50B in market cap.

What’s Next: The coming week is expected to be critical for determining whether the bill moves forward or stalls.

Why it Matters: The GENIUS Act could become the first comprehensive US framework for stablecoins, setting rules on reserves, audits, and foreign issuers. Its passage would bring clarity to a key part of the crypto ecosystem as stablecoins grow in importance.

Our Take: The bill is close to the finish line, but ethics concerns and political tension may still delay it.

GLOBAL LEGAL ROUNDUP

America:

🇺🇲 Gary Gensler privately supported crypto says McHenry.
🇺🇲 Moody's downgrades US credit rating due to rising debt.
🇺🇲 Crypto execs flock to DC to support Senate stablecoin bill.
🇺🇲 DOJ charges 12 more gamer-turned $263M Bitcoin robbers.
🇺🇲 Stablecoin bill passes in Northern Marianas as House overrides veto.
🇺🇲 CFTC commissioner Christy Goldsmith to leave agency on May 31.
🇺🇲 Everstake defends non-custodial staking as SEC weighs industry input.
🇺🇲 Coinbase drops 7% on customer breach, SEC probe into user numbers.
🇺🇲 Democrats seek suspicious activity reports linked to Trump crypto ventures.

Europe:

🇫🇷 French crypto entrepreneurs to receive extra security.
🇬🇧 UK to require crypto firms to report every customer transaction.
🇺🇦 Ukraine strategic Bitcoin reserve bill reportedly in final stages.

APAC:

🇭🇰 Hong Kong police busts $15M laundering ring that used crypto.
🇰🇷 South Korea’s Democratic Party sets up ‘Digital Asset Committee.’
🇦🇺 Crypto execs cheer as Australia appoints pro-crypto assistant minister.

CASE STUDY

From Debanking to Stablecoin Adoption

Spurce: Project Pax / FinExtra

State of play: Banks that once shut out crypto firms are now racing to adopt stablecoins. After years of debanking, shifting policy has opened the door for institutions to experiment with blockchain-based financial infrastructure.

Banks like Custodia are now issuing stablecoins like Avit on public networks, offering faster, cheaper, and programmable payments for use cases like payroll.
Stablecoin appeal lies in efficiency, lower friction, and the ability to modernize legacy rails.
Wallet usage is rising, active stablecoin wallets jumped from 19.6M to over 30M in just one year.
With 91% of supply now fiat-backed and regulatory clarity improving, banks are seeing stablecoins as a tool for staying competitive rather than a threat.

Our Take: Those who integrate public stablecoin infrastructure early may gain an operational edge in a financial system increasingly moving onchain.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Daniel Barabander’s read on Crypto and the Agent Economy.
Crypto in America’s article onthe New Remittance Tax and Crypto Adoption.
Coincenter’s article on What the Proposed Remittance Tax Means for Crypto.

gm
— Heart (@heartereum)
8:04 AM • May 16, 2025

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.